Today Dodgerblues was talking about this new promotion by GMC. When you buy or lease an eligible vehicle you won’t have to pay more than $1.99 a gallon for one year. I glanced at the particulars of how you get reimbursed, and while it looks complicated, let’s assume for now that it’s as simple as only paying $1.99 a gallon for a year. So, is it a good deal, or crap?
If I put 12,000 miles with my zipcode for an H3, it says I would save $1250. Not too bad, but is that really what I’d save? Nowhere in their calculation do they say the price per gallon they use. They only say they are using the "State Average Price for Premium Gasoline." An H3 gets 16 mpg city, and 20 mpg highway. I averaged that to 18 mpg for the calculation.
City/Highway (18 mpg):
12,000/18 = 666.7 gallons (miles/mpg = gallons used)
666.7*$2.00= $1333.3 (gallons used*cheap price=total cost of gas under program)
$1333.3+$1250=$2583.3 (total cost+savings = cost without program)
$2583.3/666.7=$3.88 (cost without program/gallons used = assumed $ per gallon)
Assuming my math is right, they are assuming a regular price per gallon of $3.88! The average price of gas around here is only $3.30 right now for cheap gas. That overestimates my savings by almost $400, lowering it to about $865. Now obviously part of this promotion relies on consumer fear of rising gas prices, but their calculated savings is only a best case scenario. They overinflate the savings by using premium prices, which I’m sure not all the eligible cars require (car enthusiasts, feel free to correct me).
So I think the deal is crap, and here’s why. Unless you drive a TON (more than the national average) your savings aren’t huge (probably less than $1000). I don’t know if they’re combining this with other deals, but there are usually cashback deals which offer more in savings, and those are guaranteed. The other reason I think it’s a joke is because it’s only for one year. The crummy mpg of an H3 is going to kill your pocketbook over the long run, not just the first year. After a year of nice gas prices you’re suddenly stuck with a gas guzzler.
So what do you think, deal or crap?






I finished Angels and Demons today and I’ll be starting The Da Vinci Code as soon as I get the book covered.
